Key points of investment:
Announcement/News: Mr. Zhang Xuhui, a shareholder of the company, plans to increase the company's shares through the Shanghai Stock Exchange stock trading system within the next 6 months. The amount is no less than RMB 18 million, no more than RMB 25 million, and promises not to reduce the company's holdings during the holdings increase period and 6 months after the increase is completed. Furthermore, the implementation of this shareholder increase plan will not cause changes in the controlling shareholders and actual controllers of the company.
Mikihara shareholders agreed with the company's development, and the shareholding ratio increased. Zhang Xuhui is the actual controller of Miki Intelligence. After the company acquired Miki Intelligence, Mr. Zhang Xuhui directly held 137.33,200 shares of the company, accounting for 0.79% of the total share capital. Miki Venture Capital and others, who acted in concert with him, held a total of 186 million shares of the company, accounting for 10.77% of the company's total share capital.
This increase in holdings is mainly based on recognition of the company's management and development strategy and firm confidence in the company's continued good development in the future. Mr. Zhang Xuhui hopes that through this increase in holdings, he will hold the company's shares for a long time and obtain the benefits brought about by the increase in the company's shareholding.
Miki Intelligence achieved a merger, and profit increased significantly in the first half of the year. At the end of January this year, the company completed the acquisition of Miki Intelligence and achieved a merger. In the first half of the year, the company achieved a total revenue of 1,145 million yuan, an increase of 81.48% over the previous year, and net profit of 326 million yuan, an increase of 48.64% over the previous year. Among them, in February-June, Miki Intelligence was affected by the traditional off-season sales in the first half of the year, achieving revenue of 499 million yuan, contributing 39.21% of current revenue, and achieving net profit of 32.12 million, accounting for 11.85% of current profit. We expect Miki Smart's business volume to increase significantly in the second half of the year, and is expected to contribute more than 100 million dollars to net profit for the whole year.
Optimistic about the company's “cash bull+star business” business model. The company's expressway business is developing steadily. It has operating rights for the Hanyi Expressway, Dazui Expressway and Huangxian Expressway, totaling 419 kilometers, which basically covers the most major transportation routes in Hubei Province. The highway toll business achieved revenue of 696 million yuan in the first half of the year, a steady increase of 10.30% over the previous year.
Miki Smart specializes in smart device manufacturing business, provides tablet and smartphone solution design and complete machine production services, and has more than 70 patents, and has strong growth potential. The expressway business provides stable cash flow to support the company's business development; the intelligent manufacturing business enhances the company's growth and brings sustainable development. We believe that the company's “cash bull+star business” business model has high investment value.
Maintain profit forecasts and maintain “buy” ratings. We maintain our profit forecast. From 2017 to 2019, the net profit of the mother is estimated to be 545 million yuan, 581 million yuan, and 612 million yuan respectively, corresponding to the current stock price of PE 18 times, 17 times, and 16 times, respectively. The current stock price maintains a “buy” rating.
Risk warning: Miki Smart's performance falls short of expectations; the policy affects the possibility of a decline in expressway traffic.